You're the second person I've heard of who didn't get the holy water from Elhan; I doubt it'd have anything to do with being evil, though, probably just a bug. Unfortunately you can't buy it anywhere. It weakens the vampires when you use it against them, but they're still beatable without it. If you really want it you can add it with the CLUAConsole: the item code is 'MISCAU'.
Edwin not having eighth circle spells at level fifteen is perfectly natural. Let him level up, he gets them soon, along with the three bonus memorisations from his specialisation and family amulet. By all rights there should be an event (real-time based, I'm pretty sure) where Edwin is transformed back into a man.
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